S&P MAINTAINS STRONG BUY OPINION ON SHARES OF PEOPLES UNITED FINANCIAL
10:15 AM ET 10/22/10
Q3 operating EPS of $0.08, vs. $0.08, is below our $0.11 estimate, with the shortfall reflecting higher than expected loss provisions. We believe the recently completed acquisitions of Financial Federal and Butler Bank will boost revenue growth in '10 and '11. While we are trimming our '10 EPS estimate by $0.03 to $0.36 to incorporate the shortfall in Q3, we maintain '11's forecast of $0.47. We keep our 12-month target price at $20, on a historical tangible book value ratio of 1.88X our '11 tangible book value per share forecast of $10.65.